Yuanta Securities: Recommends "buy" Zhejiang Sanhua Intelligent Controls (02050), with an estimated 25-50% increase in net profit for the full year of 2025.

Yuanta Securities released a research report stating that as Zhejiang Sanhua Intelligent Controls (02050) actively expands into new areas and steadily increases production capacity, the company's performance is expected to maintain a growth of 20-30% in the next few years. The company had previously announced a buyback of 300-600 million yuan, with only 1.06 billion yuan repurchased by the end of November. It is expected that the company will continue to buy back shares at opportune times, which will have a positive impact on the stock price. The company is expected to achieve net profits of 4.208 billion / 5.055 billion / 5.947 billion yuan in 2025/2026/2027, with year-on-year growth of +35.8% / +20.1% / +17.6%, and EPS of 1 / 1.2 / 1.41 yuan respectively. The corresponding PE ratios for H shares are expected to be 30/25/21 times, with a "buy" recommendation. The main points of Yuanta Securities are as follows: The company has announced its performance forecast for 2025, with an estimated net profit attributable to shareholders of listed companies of 3.874 billion to 4.649 billion yuan, a year-on-year increase of 25%-50%. The median forecast is 4.26 billion yuan, a year-on-year increase of 37.5%. The company's performance meets expectations. The net profit for the full year of 2025 is expected to increase by 25-50%, maintaining a fast growth rate. The company has announced its performance forecast for 2025, with an estimated net profit attributable to shareholders of 3.874 billion to 4.649 billion yuan, a YOY increase of 25%-50%. The median forecast is 4.26 billion yuan, a YOY increase of 37.5% (the non-net profit is 3.679 billion to 4.615 billion yuan, a YOY increase of 18%-48%, with a median forecast of 4.147 billion yuan, a YOY increase of 33%). The corresponding EPS is 0.98 yuan to 1.18 yuan, with a median of 1.08 yuan, a YOY increase of 28.6%. The company's performance meets expectations. By quarter, the company achieved a net profit attributable to shareholders of 632 million to 1.407 billion yuan in Q4, with a YOY change of -20.7% to +76.5%, a median of 1.02 billion yuan, a YOY increase of 27.9% (the non-net profit is 596 million to 1.532 billion yuan, a YOY change of -31.5% to +76.1%, a median of 1.06 billion yuan, a YOY increase of 21.8%). The company's performance has achieved fast growth, which the bank believes is mainly due to: 1) The rapid growth of the commercial air conditioning business, with an expected growth rate of over 20%, making the company's air conditioning business superior to industry growth; 2) the company actively expands new high-quality automotive customers, reducing the proportion of single large customers, and the automotive business maintains steady growth; 3) the company actively reduces costs and improves efficiency, implements refined management, and further improves profitability; 4) the company explores new business directions, has entered the energy storage and liquid cooling leading manufacturers, supplies components, and began to contribute small-scale revenue this year. As downstream demand surges, the bank believes that emerging businesses will become new growth points. The company actively deploys Siasun Robot & Automation business and is expected to achieve breakthrough progress in 2026 The company is optimistic about the development prospects of Siasun Robot & Automation, and with the close cooperation with major customers, it has entered the Siasun Robot & Automation actuator race. The company established the Siasun Robot & Automation business unit this year, increased research and development investment in related products. According to the Hong Kong IPO prospectus, the company will invest 10% of the funds raised (7 billion yuan) in Siasun Robot & Automation business and plans to recruit 200 R&D talents in the next 3 years. The company is currently cooperating with major customers on research and trial production. The market expects that in 2026, the Siasun Robot & Automation products for major customers will be put into mass production, and the company's Siasun Robot & Automation business is expected to make breakthrough progress.